Comments /1720 Views / Tuesday, 6 December 2016 00:02
IFC, a member of the World Bank Group, and BSE, Asia’s oldest exchange, have developed a unique Corporate Governance Scorecard tool.
A first-of-its-kind initiative, the tool will aid companies in identifying areas of improvement against generally accepted good practices and promote effective decision making, risk management and governance structures.
The scorecard was finalised through a process of in-depth review and public consultation with key stakeholders. The tool was used to assess the top 30 companies on the BSE. The final methodology with detailed questionnaire and the assessment report was unveiled here today.
The scorecard will help companies measure their corporate governance practices against local regulations and international benchmarks. Institutional Investor Advisory Services, an Indian advisory firm that provides independent opinion, research and data on corporate governance issues, was the technical partner responsible for drafting the Scorecard questionnaire and methodology.
“The launch of this Scorecard will help companies to go the extra mile beyond compliance and surpass global standards,” said BSE Ltd. MD and CEO Ashish Chauhan. “We appreciate the technical expertise provided by our partners and believe that the tool is a revolutionary step towards significantly raising governance practices,” added Chauhan.
India has been consistently raising the bar for implementation of good Corporate Governance practices. The Scorecard aims to encourage implementation of standards to generate incentives for reform, help direct change and ensure a process of continual improvement. It can also be used by a wide range of stakeholders including regulators, promoters and investors.
“The Scorecard will encourage Indian companies to strengthen corporate governance practices, which will enable easier access to capital from global markets, improve transparency and enhance investor confidence,” said Jun Shang, Country Manager for IFC India. “We hope that the Scorecard will help companies approach governance as a principle-driven exercise and adopt best practices,” Shang added.
Globally, IFC’s work on corporate governance has resulted in adoption of 95 laws, regulations and codes. In South Asia, IFC is implementing a Regional Corporate Governance Project with donor support from Japan’s Ministry of Finance. This five-year project provides advisory services to individual firms and partners with local institutions, such as the Indian Institute of Corporate Affairs, to strengthen sector-level work on corporate governance.
India is IFC’s top country exposure, globally. IFC’s committed portfolio in India is over $ 5 billion as of 30 June. In FY16, IFC committed $ 1.1 billion in new investments. In addition to strengthening local capital markets in India, IFC is focused on boosting financing in infrastructure and logistics, promoting financial inclusion, helping create conditions to attract increased private capital, and helping structure public-private partnerships.
28 March 2017
“Gotabaya can build a new urbanised technocratic civilisation which is the 21st century equivalent of the magnificent civilisations that this island once built; civilisations that put us ahead of the rest of South Asia, until the Tamil invad...
28 March 2017
Whilst Sri Lanka at the macro end is grappling to pay the $ 15 billion debt in the next four years, private sector and civil society is pressuring the Government to bring in structured reforms and stronger governance ...
27 March 2017
Students claim that education is not a commodity ‘Education is not a commodity’ has been a popular view almost universally held by Sri Lanka’s student community in higher learning institutions. For them, it is non...
27 March 2017
High-tech Panama Canal, a threat to Asia-Europe trade The Panama Canal Authority is developing a computerised scheduling and resource management system that it said will help double the number of big ships that can travel through the canal...
BMICH remembers its founder on International Women’s Day
HNB salutes indomitable spirit and dedication of ‘women power’
LAUGFS Eco Sri Launches ‘YOU’ in celebration of International Women’s Day
Niroshan on Govt.’s growth, transparency and visionary policies at CSE Sydney forum